Question

question 3
which of the following statements is not correct?
in a pull - based supply chain, production and distribution are demand driven.
a push - based supply chain leads to a decrease in lead - time, inventory, and variability in the system.
in a push - based supply chain, it takes much longer to react to the changing marketplace.
in a push - based supply chain, the manufacturer bases demand forecasts on orders received downstream stages.

Explanation:

In a push - based supply chain, production is based on forecasts rather than actual customer demand. It typically leads to an increase in lead - time, inventory, and variability as products are pushed into the market before demand is known. A pull - based supply chain is demand driven. Push - based supply chains take longer to react to market changes as they rely on forecasts. Manufacturers in push - based supply chains base forecasts on general market trends etc., not just downstream orders.

Answer:

B. A Push - based supply chain leads to a decrease in lead - time, inventory, and variability in the system.